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RI races to finalize US trade deals before Aug. 7 tariffs take effect

The government previously stated that until the deal is formalized, Indonesian exports would remain subject to a 10 percent baseline tariff.

Ruth Dea Juwita (The Jakarta Post)
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Fri, August 1, 2025 Published on Aug. 1, 2025 Published on 2025-08-01T16:08:45+07:00

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Coordinating Economy Ministry's spokesman Haryo Limanseto address media on Wednesday in his office. Indonesia is pushing to continue trade talks with the United States as it seeks to lower a 32 percent tariff imposed by Washington. Coordinating Economy Ministry's spokesman Haryo Limanseto address media on Wednesday in his office. Indonesia is pushing to continue trade talks with the United States as it seeks to lower a 32 percent tariff imposed by Washington. (JP/Ruth Dea Juwita)

I

ndonesia is racing to conclude a trade agreement with the United States before 19 percent tariffs take effect on Aug. 7, a new deadline set by US President Donald Trump in an executive order signed on Thursday.

“[The new tariff] will apply starting Aug. 7 as announced. For remaining issues still under discussion, we hope they can be resolved within that deadline,” Coordinating Economy Ministry spokesperson Haryo Limanseto told The Jakarta Post on Friday.

Trump’s order listed “reciprocal” tariffs ranging from 10 percent to 41 percent on US-bound imports from 69 trade partners, effectively replacing the Aug. 1 deadline with a new seven-day countdown.

Indonesia is among a handful of countries that reached a preliminary deal with Washington to reduce tariffs before the initial Aug. 1 deadline. Under the agreement, referred to by the White House as “a negotiating framework”, tariffs on Indonesian goods were lowered to 19 percent from the previous 32 percent.

Read also: Indonesia concedes on trade and data for US deal

The government previously stated that until the deal is formalized, Indonesian exports would remain subject to a 10 percent baseline tariff.

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Coordinating Economy Minister Airlangga Hartarto told reporters on July 24 that both countries were still discussing technical aspects of the agreement and the possibility of further tariff reductions on Indonesian commodities entering the US. He added that the final rate could be close to zero percent.

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